Clients need to understand the current capital risk in fixed income, as low yields mean it no longer provides the same role of security in an investment portfolio, Patrick Connolly has warned.
The Chase de Vere chartered financial planner said the rising price of fixed income, which followed the growing popularity of government bonds and the lowering of bond yields, presented risks investors needed to be made aware of. Connolly (pictured) said: "Clients have always thought the fixed income part of their portfolio would ensure the security of their investment, however that's not necessarily the case anymore. "Clients need to understand the risk to capital this [price] shift presents, if they hold 60% of their portfolio in fixed income for the purpose of giving security to in...
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